BEIJING : Sagging demand at China's urban land auctions amid a crackdown on borrowing by private developers risks squeezing regional finances, pressuring local governments to scramble for other income sources to fund investments and support the economy.
Further falls could force regional governments, who on average depend on land sales for a fifth of their revenue, to cut spending and investment. Many economists have already downgraded China's 2021 GDP growth forecast, due to a cooling property market and contagion risks from indebted property behemoth China Evergrande.
Graphic: Monthly Land Sales in Mainland China - https://graphics.reuters.com/CHINA-ECONOMY/PROPERTY-LAND/egvbkydgdpq/chart.pngIn an attempt to better control land prices in the country's most valuable locations, and by extension, prices of finished homes, authorities said in February that China's 22 biggest cities can only conduct three rounds of land auctions this year.
In an ongoing round of auctions in June-October, about 40per cent of the plots on offer were withdrawn or had no bidders as of Sept. 30, a Reuters analysis of over 1,000 public notices showed. That compared with 5per cent of untaken offers in the first round. To offset poorer land sales, local governments could issue more bonds, but that would raise the prospect of a higher debt burden, Moody's warned in a report.
In the southwestern megacity of Chengdu, state-controlled China Railway Construction Corp placed bids for 15 plots of land and put down a whopping deposit of 4.28 billion yuan .
Source: Financial Digest (financialdigest.net)
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
MGM Resorts CEO: China casino crackdown doesn’t pose a ‘major challenge’The chief executive of MGM Resorts International brushed off concerns about a Chinese government crackdown crimping profits in the world’s largest gaming...
Source: YahooSG - 🏆 3. / 71 Read more »
US will 'take all steps necessary' to defend itself on China trade'For too long, China's lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world,' said US Trade Representative Katherine Tai.
Source: YahooSG - 🏆 3. / 71 Read more »
Figure skating-Four Continents moved to Estonia after China cancelsThe Four Continents Figure Skating Championships will be held in Tallinn, Estonia in the lead-up to the Winter Olympics following China's decision to cancel the event in Tianjin due to COVID-19.The International Skating Union (ISU) said the Four Continents had been tentatively re-scheduled for Jan. 18-23,
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Japan's Kishida, Biden agree to cooperate on China, N KoreaJapan's new Prime Minister Fumio Kishida held his first talks since taking office with President Joe Biden and confirmed they will work to strengthen their alliance and cooperate in regional security in the face of growing challenges from China and North Korea. Kishida, who was elected by parliament and sworn in Monday, told reporters that Biden reassured him of the U.S. commitment to defend the Japanese-controlled East China Sea island of Senkaku, which China also claims and has escalated its coast guard activity in the area. Biden provided “a strong statement about U.S. commitment for the defense of Japan, including ... Senkaku,” Kishida said, adding that the two leaders also reaffirmed they would tackle together the “challenges facing neighboring regions such as China and North Korea.”
Source: YahooSG - 🏆 3. / 71 Read more »
French senators visit Taiwan despite China protestsA delegation of French senators led by a former defence minister arrived on Wednesday in Taiwan, where they will hold talks with President Tsai Ing-wen, despite strong protests from China. LOL suddenly so thoughtful
Source: YahooSG - 🏆 3. / 71 Read more »
Biden, Xi plan US-China virtual summit before year's end, US saysZURICH — The United States (US) and China have agreed in principle for their presidents to hold a virtual meeting before the end of the year, a senior US administration official said on Wednesday (Oct 6), after high-level talks aimed at improving communication between the two countries.
Source: TODAYonline - 🏆 1. / 99 Read more »